The Shved Supply and Demand indicator MT4 is designed to assist traders in finding supply and demand areas. The concept of supply-demand zones is slightly different from support zones. This allows you to identify potentially profitable trading points.
How does the Shved Supply & Demand Indicator work?
Demand zones are located at prices with a strong upward movement and last price rallies. While the supply zone at price levels where there was a previous fast downward movement, supply zones are formed
These values are exciting because of the price interaction over time. This allows us to identify potentially good points to trade. The levels are determined based on the supply and demand zones. There have been targeted solid movement from these areas.
The price activity in the area will determine the height of the zones. The height of the zones will increase visually if traders respond to the levels repeatedly. All chart formations include a brief text description to understand each highlighted level easily.
Shved Supply and Demand, like most Forex market indicators, give valid signals at higher timeframes. Because there is quite a bit of market noise at lower timeframes, it is essential to understand.
How to Trade with Shved Supply & Demand Indicator?
Changing trend
The chart below shows the downward trend changing to an upward trend. So, Let’s explore the concept behind using this indicator instance in greater detail:
The initial strong rally wave. The price increase is due to the high demand from Forex Market participants. If this trend is not over, the zone will be granted an “Untested” status. We will detect the second upward momentum direction if the price is close to the mark.
The chart’s pattern is becoming increasingly interesting for buyers and is now achieving a “Verified” status. The third rally wave creates an all-time high, which indicates an opportunity for the trend to continue. When the price has created three rallies, the level is given a “Proven “status. The next time the price nears the level, it is followed by a bullish trend. This time, we can find Buy entry points. This is the time to put in the pending Stop Loss order.
Mian trend
The principle behind trading to the direction of the main trend is identical to the principles of trading during the changing trend. The upward trend is a retracement relation to the overall Sell trend.
The first wave of sell-off that is falling below the low of the previous wave can be a sign of the strength of sellers. If prices are approaching the same level again, you will identify selling entry points. The second wave of sell-off starts at this point. Here, we can find the entry points for selling at market prices. This is the place where you must put in a Stop loss.
Inputs
The following table shows the input parameters of the supply and demand zone indicator. Feel free to experiment with the settings for excellent results.
Conclusions
The Shved Supply and Demand indicator MT4 helps to create an effective trading strategy. This provides verified supply and demand zones. No matter what kind of trading approach you’ll ultimately stick to, the Shved Supply and Demand indicator can be a helpful complement to it. Download your free indicator here.